Why are tomato prices rising in October : Data

A vendor selling tomato. | Photo Credit: Sushil Kumar Verma

A combination of decline in sowing and an unusually high rainfall in late September meant mandi arrivals of tomato fell sharply in October. Due to the demand-supply mismatch, wholesale and retail prices of tomato skyrocketed, with the prices relatively higher in northern and eastern regions of India.

Excess rainfall in the last week of September, across many key tomato-producing regions, had caused significant damage to vegetables ready for the market, leading to a supply shortage. This, combined with increased demand during the festive season, has driven prices up. In cities like Delhi and Mumbai, retail prices have exceeded Rs 100 per kg.

Consumer Affairs Secretary Nidhi Khare noted on Thursday that relief could be expected in urban areas soon, with increased supplies from Maharashtra anticipated in the coming days. To mitigate the impact, the government has been selling tomatoes at a subsidised rate of Rs 65 per kg in Delhi-NCR and Mumbai through the National Cooperative Consumers’ Federation of India.

Sowing declines

The chart shows the total area (in lakh hectares) of tomato crop sown during the current year and last year as on various dates

Sowing of tomato crop declined this year. As of October 4, sowing of 2.44 lakh hectares (lha) of kharif tomato was reported, 0.2 lha less than last year and 0.49 lha less than the target

High rainfall late September

The chart shows the weekly variation in rainfall compared to Long Period Average in select regions falling under the tomato production belt.

S.I.: South interior

Arrivals decline, wholesale price spikes

The chart shows the monthly arrivals of tomatoes across all Indian mandies (in crore kgs) and the modal prices in mandis (in Rs/kg). The modal price is the most commonly quoted price for a particular commodity or product. It reflects the price at which the majority of transactions take place, providing a sense of the typical price level in a market. 

A combination of low sowing and late September rain spoiling tomatoes ready for market meant that arrivals in mandis shrunk drastically in October (36% year-on-year), leading to the mandi modal prices increasing significantly, reaching an average of Rs 45 per kg. 

Retail prices spike

The chart shows the zone-wise average retail price every month in Rs/kg 

The average retail prices shot up to Rs 65-70 per kilo in the north and the eastern regions in October. In the south and the west, the spikes were relatively less pronounced, with the retail prices ranging from Rs 55-58 per kg.

With inputs from PTI

nitika.evangeline@thehindu.co.in

vignesh.r@thehindu.co.in

Published – October 19, 2024 07:00 am IST